BTO exercise: No surge in demand after scheme launch

SINGAPORE — Despite being the first Build-to-Order (BTO) exercise where flat owners buying a two- or three-room flat in a non-mature estate can opt to pay half the required down payment, the latest BTO exercise closed yesterday without any general surge in applications for these units.

The Staggered Downpayment Scheme announced last week helps existing flat owners who want to move to smaller flats, especially the elderly facing cash flow difficulties.

Commenting on the application rates, property analysts noted that there is no pent-up demand from this group and that it would take time for the public to be aware of the scheme.

As of 5pm yesterday, the application rates for second-timers for two- or three-room flats in a BTO project in Bukit Batok were 0.3 and 2.9, respectively.

The application rates for second-timers for two- and three-room units in a Jurong West project were 0.3 and 1.6, respectively.

Mr Chris Koh, director of Chris International, noted that the new scheme is meant to offer another form of assistance to the elderly and was not a response to demand.

“We are just opening up a lot more options for the elderly to right-size and monetise. The challenge we have now is to educate them on these options,” he said.

Mr Ku Swee Yong, Century 21 Singapore’s chief executive, added that, it is often not a straightforward decision for elders to move into smaller flats in retirement. They would want to look for a place that it is near to their friends, for instance.

Since the scheme was recently launched, a surge in applications from this group was unlikely, he added.

Meanwhile, demand from singles for two-room flats continued to be strong. For example, there were about nine singles vying for each two-room unit in the Bukit Batok project.

On the overall application rate of 2.9, analysts said prospective buyers are holding out for next month’s joint BTO and Sale of Balance Flats (SBF) exercise. SBF units have a shorter waiting time than newly-launched BTO flats.

Demand for the Buangkok Square project in Hougang was exceptionally high. There were a total of 400 applicants — comprising both first-timers and second-timers — for 116 three-room units and about 23 singles were vying for each two-room unit.

Analysts attributed the popularity of this project to its good location and proximity to a MRT station.

Mr Ku said Hougang is also a relatively mature estate with several flats aged 35 to 40, so there is a significant number of flat-hunters who wish to live near their parents staying there.